Council ratifies three‑year MOU with Professional & Administrative employees; three percent annual increases included

Human Resources presented a tentative successor memorandum of understanding (MOU) between the City of Hermosa Beach and the Professional & Administrative Employees (PAE) bargaining unit covering the three‑year period July 1, 2025 to June 30, 2028.

HR reported the PAE unit ratified the agreement on June 18 after meet‑and‑confer sessions. Key elements include a 3% wage increase effective July 1, 2025, another 3% effective July 1, 2026 and 3% on July 1, 2027. The agreement also implements compensation study recommendations for select classifications below median, increases the deferred compensation employer match from $25 to $50 per month, makes bilingual pay a $100 monthly stipend (with removal of the prior percentage‑based cap), adds a modest management leave hour increase, and embeds a previously paid premium for the public works superintendent into base pay.

The city estimated the total three‑year cost of the agreement at approximately $511,587; staff said the impacts were included in the budgeting process for the coming fiscal year and future years. The MOU also contains reopeners and a “me‑too” clause to preserve parity where applicable.

Action: Council voted unanimously to approve the resolution adopting the successor MOU for 07/01/2025–06/30/2028.

Ending: HR thanked the bargaining team and the union representatives for a negotiated agreement; staff will implement pay and benefit changes consistent with the MOU and budget appropriations.